Celsion Corporation

Celsion Corporation (NASDAQ: CLSN) is a clinical-stage biotechnology company engaged in developing GEN-1, a DNA-based immunotherapy for the targeted treatment of ovarian cancer, and ThermoDox, a heat-activated liposomal encapsulation of doxorubicin for a variety of cancer indications, are among the company's product pipeline.

Key Highlights

• The company reported licensing revenues to USD 125 thousand in Q3FY21 (ended September 30, 2021).
• CLSN's net loss reduced to USD 5.41 million during Q3FY21 vs. USD 8.07 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents (including short-term investments) of USD 54.51 million and total debt of USD 5.81 million.
• CLSN's Q3FY21 cash cycle of 52 days is lower than the industry median of 72 days.
• Its ROE was -8.8% in Q3FY21 vs. the industry median of -7.7%.
• On February 28, 2022, CLSN stated that it had received USD 1.4 million in net cash proceeds from the sale of USD 1.5 million in unused New Jersey net operating losses (NOLs).
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 4.32 to USD 35.40.
• CLSN's stock price decreased 70.50% and 73.05% in the past six and nine months, respectively.

Technical Price Chart (as of March 03, 2022). Source: REFINITIV, Analysis by Kalkine Group

Conclusion: The company is yet to generate product revenues, considering long-term profitability issues, significant correction in the stock price, technical indicators, and associated risks. We recommend a "Avoid" rating on the stock at the closing price of USD 4.69, down 1.26%, as of March 03, 2022.

*The reference data in this report has been partly sourced from REFINITIV.